HiteJinro to build first overseas production plant in Vietnam

[Courtesy of HiteJinro]

South Korea’s HiteJinro Co. is gearing up to accelerate its soju exports by building its first overseas soju production plant in Vietnam, just ahead of the company’s centennial anniversary in 2024.

The company’s Singapore subsidiary announced on Monday that it had signed a lease agreement with the operator of the Green i-Park industrial complex in Vietnam’s Thai Binh province to construct a soju manufacturing factory. This venture is the company’s first production facility outside Korea.

HiteJinro established its Singapore subsidiary in September 2022 with the goal of creating a headquarters for overseas production and sales operations to expand its global soju market presence.

Over the past six years, HiteJinro has witnessed a consistent annual growth in soju exports, averaging around 15 percent. In the first half of 2023, the company’s soju exports totaled about 27.1 billion won ($20 million), up 32.1 percent compared to the same period last year.

HiteJinro expressed confidence in its prospects, saying this growth trend will continue, and it expects overseas soju sales to increase by more than threefold compared to 2022 figures over the next ten years.

The decision to select Vietnam as a production hub is a strategic move factoring in the country’s favorable geographical location, competitive pricing, logistical accessibility, and the ease of securing a workforce. Thai Binh province in northern Vietnam is strategically located adjacent to the country’s capital city Hanoi and boasts a well-developed infrastructure, including international air and seaports as well as coastal roads. The province’s total population of about 1.14 million people provides a ready workforce and is equivalent to 57 percent of the province’s total population.

Moreover, the local production facility will offer cost competitiveness due to lower labor expenses in Vietnam than in Korea, enabling HiteJinro to tailor its products to different markets with a variety of container sizes and packaging options.

The Green i-Park industrial complex in Thai Binh Province, where HiteJinro’s Vietnam plant is located, was approved in the Thai Binh Special Economic Zone Master Plan in 2019 and broke ground in late 2020.